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Imagine UMAX looking into acquiring a private company that is generating $20 million in Revenues. Let's presume that the company has Net Income of $5 million. Before reading any further, please understand that this post is only speculative in nature and is not the gospel. I’ll explain why I used these numbers later within this post.
Let’s now presume the reason why the owner of that private company might be willing to do such a deal with UMAX for a certain amount of preferred shares to use as leverage to do acquisitions. Let's say for a value of $10 million even though its company is producing the numbers I mentioned in the first paragraph.
The Series B Preferred Shares converts to common at a 5 to 1 ratio and are the shares that would be used for acquisition purposes. Each Series B Preferred Share is worth .20 per share per the company’s website below. This means that with what the company knows about itself in private, they believe that UMAX is worth right now a minimum of .20 ÷ 5 which is .04 per share before any acquisition has even been placed into UMAX. See below per the UMAX website:
Quote:
www.umaxcorp.com/
Since 10,000,000 Series B Preferred Shares is worth $2,000,000 at a price of .20 per share, then by basic math, 50,000,000 Series B Preferred Shares is worth $10,000,000 that can be used to consummate such an acquisition. This was derived by using ”5” as the multiple since 5 to 1 is the conversion ratio. Since the shares are Preferred Shares and since UMAX is not a fully reporting company, any conversion for any preferred shares used can’t take place until after one year from the date issued which gives UMAX a chance to grow into its acquisitions within the market. Still… 50,000,000 Series B Preferred Shares converts into 250,000,000 common shares. If a company is bringing in the value I mentioned above, then the additional shares should be welcomed by us shareholders and the company. This is what I would term as ”Good Dilution” for a stock because it is bringing in substantial value and growth in proportion to where the company was before such an acquisition.
So one might ask… Why would a private company do this?
By remaining as a private company, you only have one arm of growth… The Operational Arm of Growth. With this arm of growth, in the example I am using above, the company would only have growth from its ”operations” only.
By becoming a public entity and having shares in the public company allows you to have an additional arm of growth… The Equity/Stock Arm of Growth… along with the already existing… Operational Arm of Growth. With this additional arm of growth, in the example I am using above, the company would have growth from its operations and the additional equity/stock arm of growth from the value place into its 250,000,000 public shares (from 50,000,000 Series B Preferred Shares) that would not have existed otherwise.
Let’s break this down a step further to better understand the financial worth for the private company going public under the UMAX construct.
Let me start by saying that the Outstanding Shares (OS) is the key denominator that is used to assess a fundamental valuation through the computation of an Earnings Per Share (EPS):
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
The EPS is what is used by the market to determine where a stock should trade by multiplying that stock by a Price to Earnings (P/E) Ratio which is the growth rate for a particular Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
www.investopedia.com/terms/p/price-earningsratio.asp
The OS for UMAX is last reported to be 518,400,000 shares so this is what we will consider for the purpose of this post. Let’s presume that an acquisition is done where UMAX acquires a company for 50,000,000 Series B Preferred Shares that would after one year, would be ”eligible” to convert into 250,000,000 common shares. Because of this, it is fair to consider the OS of 518,400,000 shares for UMAX because as long as the company continues to generate revenues and profits exponentially, then I’m sure they would realize that the longer they don’t convert their Series B Preferred Shares, the greater the value they would be yet further down the road because such would keep the OS from growing. This would also make UMAX look more attractive for additional acquisition candidates looking to mirror the process. This is important because again, the OS is the key denominator used to assess the valuation of a company; the lower the OS is kept, the greater the valuation of the stock. Consider these Key Variables to better understand what’s following…
Key Variables
** Net Income = $5,000,000
** OS = 518,400,000 Shares
** Conservative P/E Ratio = 15
This means a speculative value of below…
EPS x P/E Ratio = Fundamental Share Price
$5,000,000 Net Income ÷ 518,400,000 (OS) = .0096 EPS
.0096 EPS x 15 Conservative P/E Ratio = .144 Per Share Price Value
Here’s the beauty about this model… Now let’s presume that UMAX finds another company similar or few companies similar in value that’s willing to be acquired under the very same premise. Then the per share value of UMAX would continue to grow ”exponentially” as per company/acquisition with such a similar value is acquired by UMAX to mirror the chart below for consideration:
UMAX acquires 1 company = .144 Per Share Price Value
UMAX acquires 2 companies = .288 Per Share Price Value
UMAX acquires 3 companies = .432 Per Share Price Value
UMAX acquires 4 companies = .576 Per Share Price Value
UMAX acquires 5 companies = .72 Per Share Price Value
And so on… and so on… and so on… until they feel that they have enough companies under their business model. Now let’s calculate the worth of the private company’s Series B Preferred Shares if ever converted to 250,000,000 commons shares based on the model above for 1,2,3,4,or 5 acquisitions of the same likeness and considering that each company would allow UMAX to grow to certain heights before converting their shares into common shares:
250,000,000 from 1 Acquisition = $36,000,000 in Common Shares Value
250,000,000 from 2 Acquisitions = $72,000,000 in Common Shares Value
250,000,000 from 3 Acquisitions = $108,000,000 in Common Shares Value
250,000,000 from 4 Acquisitions = $144,000,000 in Common Shares Value
250,000,000 from 5 Acquisitions = $180,000,000 in Common Shares Value
To play around with the UMAX potential, based upon the model that I created to consider above, use the Substitution Property to sub in and out certain numbers for Revenues and/or Net Income amounts or any other key variable that gets officially released by the company to get an idea of what the value of UMAX would be as a company upon any announcements of acquisitions completed that’s brought into the company.
I said I was going to explain why I used the numbers in the first paragraph so here goes. I considered the numbers I used in the first paragraph of this post from ”only” a ”speculative” starting point just in case the company that UMAX is considering to acquire is the company that is listed within the profile of the new member (Robert Haltom) that UMAX brought on board to help the company within the link below:
(Again, this is only speculation unless the company confirms otherwise.)
Quote:
www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=17163
investorshub.advfn.com/boards/read_msg.aspx?message_id=117761460
While providing management oversite to these new companies, Mr. Haltom directed and facilitated a complete organizational turn-around for National Product Sales (NPS) of Salt Lake City Utah. Over a 12 month period, Haltom’s prowess and tenacity in business development and customer growth brought new accounts and life to a 30 year old company resulting in $20 million dollars in new revenues to a small Utah company while growing the retail customer base from 1,500/daily to 2,800/daily. Over the ensuing 24 months, more than 250 new full-time jobs were added as a result of this successful turnaround.
Something big coming >>
http://www.otcmarkets.com/stock/umax/news
UMAX only 124 million float by 0011 pps. Gift!
UMAX QB up listing planned for 2016. GEQU run's on QB up listing 0012 to $ 05 with Double higher float
Massiv MERGER news is the key for $05 range turn. UMAX ready.
Complete agree with hunter. UMAX looks so good. Just wait for major PR's.
Can't find any p&d. The posting players all 001-002 in here and since about 6 weeks same members. UMAX just a 124 million low floater with huge breakout potential. But a p&d? No never.
Chart still bottom line. Very attractiv pps potential.
LPPI strong close friday. On my watchlist for tomorrow.
UMAX ask still 1x0011 1x0019 1x002 1x003. very small float. We will fly on News.
Imagine UMAX 0012 looking into acquiring a private company that is generating $20 million in Revenues. Let's presume that the company has Net Income of $5 million. Before reading any further, please understand that this post is only speculative in nature and is not the gospel. I’ll explain why I used these numbers later within this post.
Let’s now presume the reason why the owner of that private company might be willing to do such a deal with UMAX for a certain amount of preferred shares to use as leverage to do acquisitions. Let's say for a value of $10 million even though its company is producing the numbers I mentioned in the first paragraph.
The Series B Preferred Shares converts to common at a 5 to 1 ratio and are the shares that would be used for acquisition purposes. Each Series B Preferred Share is worth .20 per share per the company’s website below. This means that with what the company knows about itself in private, they believe that UMAX is worth right now a minimum of .20 ÷ 5 which is .04 per share before any acquisition has even been placed into UMAX. See below per the UMAX website:
Quote:
www.umaxcorp.com/
Since 10,000,000 Series B Preferred Shares is worth $2,000,000 at a price of .20 per share, then by basic math, 50,000,000 Series B Preferred Shares is worth $10,000,000 that can be used to consummate such an acquisition. This was derived by using ”5” as the multiple since 5 to 1 is the conversion ratio. Since the shares are Preferred Shares and since UMAX is not a fully reporting company, any conversion for any preferred shares used can’t take place until after one year from the date issued which gives UMAX a chance to grow into its acquisitions within the market. Still… 50,000,000 Series B Preferred Shares converts into 250,000,000 common shares. If a company is bringing in the value I mentioned above, then the additional shares should be welcomed by us shareholders and the company. This is what I would term as ”Good Dilution” for a stock because it is bringing in substantial value and growth in proportion to where the company was before such an acquisition.
So one might ask… Why would a private company do this?
By remaining as a private company, you only have one arm of growth… The Operational Arm of Growth. With this arm of growth, in the example I am using above, the company would only have growth from its ”operations” only.
By becoming a public entity and having shares in the public company allows you to have an additional arm of growth… The Equity/Stock Arm of Growth… along with the already existing… Operational Arm of Growth. With this additional arm of growth, in the example I am using above, the company would have growth from its operations and the additional equity/stock arm of growth from the value place into its 250,000,000 public shares (from 50,000,000 Series B Preferred Shares) that would not have existed otherwise.
Let’s break this down a step further to better understand the financial worth for the private company going public under the UMAX construct.
Let me start by saying that the Outstanding Shares (OS) is the key denominator that is used to assess a fundamental valuation through the computation of an Earnings Per Share (EPS):
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
The EPS is what is used by the market to determine where a stock should trade by multiplying that stock by a Price to Earnings (P/E) Ratio which is the growth rate for a particular Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
www.investopedia.com/terms/p/price-earningsratio.asp
The OS for UMAX is last reported to be 518,400,000 shares so this is what we will consider for the purpose of this post. Let’s presume that an acquisition is done where UMAX acquires a company for 50,000,000 Series B Preferred Shares that would after one year, would be ”eligible” to convert into 250,000,000 common shares. Because of this, it is fair to consider the OS of 518,400,000 shares for UMAX because as long as the company continues to generate revenues and profits exponentially, then I’m sure they would realize that the longer they don’t convert their Series B Preferred Shares, the greater the value they would be yet further down the road because such would keep the OS from growing. This would also make UMAX look more attractive for additional acquisition candidates looking to mirror the process. This is important because again, the OS is the key denominator used to assess the valuation of a company; the lower the OS is kept, the greater the valuation of the stock. Consider these Key Variables to better understand what’s following…
Key Variables
** Net Income = $5,000,000
** OS = 518,400,000 Shares
** Conservative P/E Ratio = 15
This means a speculative value of below…
EPS x P/E Ratio = Fundamental Share Price
$5,000,000 Net Income ÷ 518,400,000 (OS) = .0096 EPS
.0096 EPS x 15 Conservative P/E Ratio = .144 Per Share Price Value
Here’s the beauty about this model… Now let’s presume that UMAX finds another company similar or few companies similar in value that’s willing to be acquired under the very same premise. Then the per share value of UMAX would continue to grow ”exponentially” as per company/acquisition with such a similar value is acquired by UMAX to mirror the chart below for consideration:
UMAX acquires 1 company = .144 Per Share Price Value
UMAX acquires 2 companies = .288 Per Share Price Value
UMAX acquires 3 companies = .432 Per Share Price Value
UMAX acquires 4 companies = .576 Per Share Price Value
UMAX acquires 5 companies = .72 Per Share Price Value
And so on… and so on… and so on… until they feel that they have enough companies under their business model. Now let’s calculate the worth of the private company’s Series B Preferred Shares if ever converted to 250,000,000 commons shares based on the model above for 1,2,3,4,or 5 acquisitions of the same likeness and considering that each company would allow UMAX to grow to certain heights before converting their shares into common shares:
250,000,000 from 1 Acquisition = $36,000,000 in Common Shares Value
250,000,000 from 2 Acquisitions = $72,000,000 in Common Shares Value
250,000,000 from 3 Acquisitions = $108,000,000 in Common Shares Value
250,000,000 from 4 Acquisitions = $144,000,000 in Common Shares Value
250,000,000 from 5 Acquisitions = $180,000,000 in Common Shares Value
To play around with the UMAX potential, based upon the model that I created to consider above, use the Substitution Property to sub in and out certain numbers for Revenues and/or Net Income amounts or any other key variable that gets officially released by the company to get an idea of what the value of UMAX would be as a company upon any announcements of acquisitions completed that’s brought into the company.
I said I was going to explain why I used the numbers in the first paragraph so here goes. I considered the numbers I used in the first paragraph of this post from ”only” a ”speculative” starting point just in case the company that UMAX is considering to acquire is the company that is listed within the profile of the new member (Robert Haltom) that UMAX brought on board to help the company within the link below:
(Again, this is only speculation unless the company confirms otherwise.)
Quote:
www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=17163
investorshub.advfn.com/boards/read_msg.aspx?message_id=117761460
While providing management oversite to these new companies, Mr. Haltom directed and facilitated a complete organizational turn-around for National Product Sales (NPS) of Salt Lake City Utah. Over a 12 month period, Haltom’s prowess and tenacity in business development and customer growth brought new accounts and life to a 30 year old company resulting in $20 million dollars in new revenues to a small Utah company while growing the retail customer base from 1,500/daily to 2,800/daily. Over the ensuing 24 months, more than 250 new full-time jobs were added as a result of this successful turnaround.
UMAX 0012 ~~ 124 million float ~~ pink current ~~ JV & Merger ahead.
UMAX ready. Just wait for milestone News.
Restructuring for Growth:
The Company has recently restructured its shares structure with the State of Nevada for
the main purpose of moving the company to the next level in the coming year. The
company has increased its authorized shares to accommodate the creation of both A
Class Preferred and B Class Preferred. The structure is that A Class Preferred as control
stock will carry a conversion of 1000: 1 common and B Class stock with a conversion of
5:1 common for future projects in regards to partnerships, mergers, or other ways of
working together. The company intends to use the B Class Preferred in its present offering
to accredited investors or institutional investors of 2M USD in order to grow the company
further, with the intention of becoming where possible fully reporting in the coming year.
Research is been done for qualified auditors in order to accomplish this task (Cost). The
company has identified projects once funded that will generate significant revenue
reporting in the coming year (Building Division UMAX Development LLC) with more
projects to come once the new development site is launched
www.umaxdevelopment.com (Under Construction).The company has also relaunched a
new look on its web site identifying and targeting different areas of interest in business.
www.umaxcorp.com all of which allow for vertical and horizontal integration in revenue
streams.
Operations in Utah Begin:
UMAX Group Corp. announces the launch of their housing development division, with the formation of UMAX Development LLC in the state of Utah. We are excited that the construction division is now operational. UMAX Development LLC is already negotiating terms and conditions on four development projects with the anticipation of finalizing said contracts between the land owners and UMAX Development LLC in the near future. This is a huge step forward in meeting our growth objective in the coming year. With this addition, the creation of a new and more detailed web site solely for the construction division is necessary outlining the future use of green innovative technologies, solar, wind, solar thermal and more UMAX Development LLC intends to incorporate in its building concepts (I House) concepts. Presently the site is under construction www.umaxdevelopment.com
NEW PUBLIC RELATIONS OFFICER:
UMAX is happy to announce that Robert Haltom (Utah Resident) has agreed to accept
the position as Public Relations Officer. He bring years of organization skill and
management to the company (See Resume Below). One of his main activities will be
seeking our revenue generating opportunities with aspect to a possible merger or
acquisition for the company. He will begin the negotiations outlining the terms and
conditions, preparing documentation to present to the board of directors for evaluation.
As the CEO Ian Dixon quotes, he will be a great addition to our company
Robert A. Haltom, CEO and founder of multiple successful companies both in for-profit
and non-profit industries joins UMAX Corp with 22 years of business startup and
development experience. Gaining a degree from Brigham young University in
Communications with an emphasis in Human Resources, Mr. Haltom set out founding
and building a medical and pharmaceutical company names Associated Pharmaceutical
Group--his first of many successful companies.
Thereafter, Mr. Haltom launched Globus Relief—today a highly successful, medical,
humanitarian charity which has delivered over one half billion dollars in medical relief
supplies around the globe since its founding in 1996. With these two medical
organizations, Haltom entered into his first real estate development venture, including
building, leasing and managing professional medical building in Arizona.
While providing management oversite to these new companies, Mr. Haltom directed and
facilitated a complete organizational turn-around for National Product Sales (NPS) of Salt
Lake City Utah. Over a 12 month period, Haltom’s prowess and tenacity in business
development and customer growth brought new accounts and life to a 30 year old
company resulting in $20 million dollars in new revenues to a small Utah company while
growing the retail customer base from 1,500/daily to 2,800/daily. Over the ensuing 24
months, more than 250 new full-time jobs were added as a result of this successful turn-
around.
With the crash of the dot com industry in 2000, and wild speculation as to the future of
the net, Mr. Haltom founded one of Utah first dot com automotive dealerships. Called
crazy and reckless and warned of imminent failure on the heels of the dot com collapse,
Mr. Haltom founded his internet sales company not only beating the established big auto
dealerships to the web scene but enjoying millions in sales revenue well before the big
auto dogs recognized that the internet was the wave of the futureGenerating millions in new online sales through his online dealership, called Kennadie
Christian Motors, (KCM) Mr. Haltom discovered, first hand, the power and reach of the
internet. As the internet company grew, KCM began selling high end, Audi, BMW,
Mercedes Benz, Porsche, etc., around the world in such places as Russia, France, China,
Guatemala, Canada and so on. Haltom’s view of the national and international internet
sales opportunity would ever be changed as a result of moving big purchases over an
ever expanding new sales medium.
Mr. Haltom joins UMAX in the capacity of Public Relations and business development.
His creativity in multiple industries, startups and business development will add value to
the organization as UMAX Corp moves forward and grows stock values for each investors
and major stakeholder. Mr. Haltom resides in Salt Lake City, Utah with his family and is
currently engaged as a Chief Operating Officer—hired to turn around and stabilize a
dynamic non-profit, national membership association
UMAX Consolidates Construction Partnerships
LAS VEGAS, NV--(Marketwired - Aug 21, 2015) - UMAX Group Corp (OTC PINK: UMAX) announces alliance with a leading Utah based land developer.
The company has completed negotiations with a Utah general contractor to establish a licensed contractor company in Southern Nevada. The alliance will significantly reduce Construction and development costs on identified projects in the Nevada housing market. Las Vegas is yet again on a growing phase and housing is in high demand, UMAX intends to go one step further by offering actual green houses built into the home, offering both energy saving and healthy living. This will set us as a developer apart from other giants as a small infill builder offering much more, solar power, but also solar thermal for hot water as well as small green house patio's for healthy living. Building this into the houses it becomes part of the mortgage hence no retro fits, solar leases, PPA's and other long term extra commitments towards the owners, this allows the cost of renewable energy to be spread across the life of the mortgage and not short term loans, yet still meeting the square footage appraisal values.
Identified Projects to date include 10 Custom Homes
UMAX has identified in fill lots in Las Vegas with huge potential, on a developed part of town 10 custom homes, this lot is fully engineered and ready to break ground. The company is actively seeking funding partners to secure the land parcel and the company with then prepare to do the pre sales of the homes to be developed. Contact us directly for more information, The lot size is larger than normally found in Las Vegas city limits this been approx. 7000 square feet, an attractive family home at affordable pricing. Fully developed the project should yield the company 1.2 million in gross sales.
For more information contact us: communication@umaxcorp.com
Contractor Agrees to Joint Venture with UMAX
Company agrees with its Utah general contractor joint venture partner to establish a licensed contractor company in Las Vegas under the reciprocation laws governing a General Contractors license. UMAX will form a 100% owned subsidiary (LLC) entity in the coming months. Which will managed by both parties under the operating agreement of the LLC to initiate in the future, land developments, hydroponics and agriculture buildings and structures. Due to the in house general contractors license the cost of construction and development will be significantly reduced (Cost savings on operations and bids). It will also help with any other future development UMAX and the GC wish to undertake as partners
This time line is immediate, however, due to regulatory compliance it is expected to be completed in the coming months of August to Dec 2015, in the meantime UMAX will work with said General Contract (Harmony Homes, Utah) to look for joint venture and land owners to further grow the company in Utah. UMAX development LLC will continue to look for assets and construction projects that generate cash flow and creation of JOB in the future.
UMAX 0012 * pink current * 124m float × with pending JV and Merger. +2000% and more intraday on sudden merger news. UMAX time coming.
UMAX 0012 * pink current * 124m float × with pending JV and Merger. +2000% and more intraday on sudden merger news. UMAX time coming.
UMAX 0012 * pink current * 124m float × with pending JV and Merger. +2000% and more intraday on sudden merger news. UMAX time coming.
Right, otc .00 stocks with another rules. Not a NYSE or NASDAQ stock. UMAX big turn around potential. Strong buy bottom invest.
UMAX 124 million low floater @0015 and pending big news? Big gain coming.
Just wait on JV and Merger news and UMAX sudden fly few 1000%.
UMAX looks ready. Pennyland breakout coming.
UMAX is a must have for .00 penny trader. Very low float and Merger QB uplisting JV coming. Very large potential for 50 bagger.
5000% bounce very possible. Just need the right news and kabooommmmmmm.
Less than 1000$ left to break 002. UMAX paper thin.